Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) Electricity Expansion (P103037) AFRICA | Kenya | Energy & Extractives Global Practice | IBRD/IDA | Specific Investment Loan | FY 2010 | Seq No: 9 | ARCHIVED on 05-Jan-2016 | ISR21733 | Implementing Agencies: KENYA POWER AND LIGHTING COMPANY, Rural Electrification Authority, KENGEN, Ministry of Energy and Petroleum Key Dates Key Project Dates Bank Approval Date:27-May-2010 Effectiveness Date:01-Oct-2010 Planned Mid Term Review Date:01-May-2013 Actual Mid-Term Review Date:01-May-2015 Original Closing Date:30-Sep-2016 Revised Closing Date:30-Sep-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project has two development objectives: (a) increase the capacity, efficiency, and quality of electricity supply; and (b) expand access to electricity in urban, peri-urban, and rural areas Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Geothermal Generation:(Cost $1035.00 M) Transmission:(Cost $72.50 M) Distribution:(Cost $272.00 M) Sector Institutional Development and Operational Support:(Cost $11.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Moderate  Moderate 1/5/2016 Page 1 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) Implementation Status and Key Decisions Additional geothermal generation capacity (280MW) – The 140MW Olkaria IV and 140MW Olkaria I power plants were commissioned into operation in September 2, 2014 and January 2015, respectively. The commissioning of the 280MW geothermal project has almost doubled Kenya’s developed geothermal capacity to 579MW from 241MW in 2013. Since being commissioned, the two plants have generated 2,316 GWh, which have displaced units which would have been generated from the thermal plants, with significant savings in fuel costs, and consequent reduction in electricity price paid by consumers. Transmission and Distribution: Implementation of the transmission and distribution projects works (Components B and C), although delayed by about 13 months compared to the original contractual schedule due to delays in aquisition of land for project sites and wayleaves and contractors’ delays has now improved and are moving towards completion. The transmission and distribution substations and lines are expected to be completed by March 2016, except the last batch of distribution lines whose contracts were awarded in October 2014 which are scehuled to be commissioned in June 2016. The Government and the implementing agencies (KPLC, KETRACO) however, should closely supervise the Awendo and Kisii substations being implemented by ABB and the last batch of distribution projects also resolve the existing wayleaves dispute at Bangale section of 132kV Mwingi- Garissa transmission line to ensure that all works are completed within the scheduled time in view of the short time before the Project closure on September 30, 2016. Rural Electrification Component (Priority Loads): This component is being implemented by REA is expected to be completed by February 2016. Inspection Panel Investigation Report on the Generation Component: The World Bank Board discussed the Investigation Report of the Inspection Panel on the generation component of the Project, together with the World Bank’s Management Response on October 20, 2015. The Inspection Panel Report followed complaints by some members of the Masaai community affected by the resettlement under the generation component. The complaint was processed jointly with the EIB Complaint Mechanism who also received the complaint. Subsequently, EIB , at the request of KenGen has started a mediation process with the aim of facilitating agreement on remedial actions between KenGen and the complainants. The World Bank Board authorized World Bank Management to participate in the mediation process as a co-facilitator and present an action plan for approval within a year (i.e October 2016). In parallel, the Bank will continue to provide enhanced supervision to the Project . Status of Implementation of the Resettlement Action Plan: Two key aspects of the MOU were outstanding at the time the PAPs relocated to RAPland in August 2014. These were (a) transfer of titles and (b) Upgrading of the RAPland road to an all-weather road by KERRA standards. The transfer of the titles for the 1,700 acres of RAPland and the 14 acres of the cultural centre land from Kendong Ranch Limited to KenGen was completed on June 15, 2015. The RAPland however, require to be surveyed and subdivided to excise land to be allocated to each public facility (school, dispensary, churches, and administration office) and the roads from the land which will be transferred for communal ownership by the PAPs through their welfare society (Ewang Sinyati Welfare Society). Survey of the land required by the road network has been completed. Survey of the rest of RAPland has been delayed as the PAPs had to agree first on the land sizes to be allocated to each public facility. The PAPs have now made this decision and provided the information to KenGen who has is in the process of procuring a surveyor to undertake boundary survey to excise the public facilities from the rest of the RAPland. Each public facility will have an individual title which will be transferred to the relevant government ministries. The titles for land occupied by the churches will be transferred to the relevant churches. KenGen signed a contract for road upgrading in September 2015 and works are in progress. The work progress is delayed by the El Nino rains currently being experienced as the contractor is currently focusing on fortifying the road against immediate effects of the rains. The construction of the road will be completed by April 2016. The Bank had received complaints from some members of the Bangali Asharaf group, a clan of the Somali community claiming to have been excluded from compensation for wayleaves compensation by Ketraco. The complainants also claimed that the transmission lines had traversed a sacred grave at Ashraf Kona. The World Bank hired an independent consultant familiar with the Garissa area and Somali clans in July 2015 to investigate the complaints. A report was submitted to the World Bank September 7, 2015 which concluded that that the claims had no merit. Risks 1/5/2016 Page 2 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Moderate  Moderate Environment and Social  --  Substantial  Substantial Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  People provided with access to electricity by household connections (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4785360.00 10733505.00 1425000.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDPDOTBL  People provided with access to electricity by hhold connections-Grid (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4785360.00 10733505.00 1425000.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDPDOTBL  Ppl provided wth elec. by hhold conn.–Offgrid/minigrid–Only renewable sources (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target 1/5/2016 Page 3 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) Value 0.00 0.00 0.00 0.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDPDOTBL  Ppl pvd wth elec. by hhold conn.–Offgrid/minigrid–Any source except only renewable (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 150000.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDPDOTBL  Electricity losses per year in the project area (Percentage, Core) Baseline Actual (Previous) Actual (Current) End Target Value 16.30 18.00 17.51 14.50 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDPDOTBL  Electricity losses per year in the project area- Non-Technical (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 PHINDPDOTBL  Electricity losses per year in the project area- Technical (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 1/5/2016 Page 4 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDPDOTBL  Total net injected generation (Megawatt hour(MWh), Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 30.00 1270.00 2020.00 PHINDPDOTBL  1. Electricity generation from renewable generation capacity constructed under the project, net (Gigawatt-hour (GWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 1270.70 2020.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 Comments 140MW Olkaria IV and 140MW Olkaria I plans in operation. However, the 140MW Olkaria I was commissioned only in January 2015 PHINDPDOTBL  2. Electricity losses per year in the project area (CORE) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 16.30 -- 17.51 14.70 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 Comments Out of 17.51%, the Distribution losses accounted for 13.06% while Transmission losses were 4.45%. Higher-than-target losses are due to: 1. Understating of electricity sales due to meter reading estimations, illegal tapping, power theft and extended distribution lines in the LV network; 2. Mismatched timing of completion of new power stations and new transmission line reinforcements and high loading of some existing transmission lines (e.g. delayed Nairobi – Mombasa 400Kv line and, Isinya –Suswa Line has led to long routing of power from the new KenGen Kipevu III Power Station and highly loaded Lanet - Lessos 132kV and Olkaria Nairobi 220kV lines) Initiatives to reduce losses include: 3. Meter reading campaigns addressing meter reading quality and coverage, increasing revenue collection and reduction in days receivable for customer debts. 4. Implementing Global sweep inspections of meters to identify and repair meters that have been tampered with to reduce power theft; 5. Completion of strategic transmission lines by KETRACO will increase transformation voltages; 6. Implementing a Reactive Power Compensation Project in West Kenya, Coast and Mt. Kenya regions; Generation balance at load centers to reduce long distance transfers. 1/5/2016 Page 5 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDPDOTBL  3. Average interruptions frequency per year in the project area (CORE) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 70000.00 40525.00 106740.00 51000.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 Comments This indicator has been affected by transformer vandalism PHINDPDOTBL  4. People provided with access to electricity in the project area (CORE) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4785360.00 10733505.00 1425000.00 Date -- 30-Jun-2014 30-Jun-2015 30-Sep-2016 Comments Target achieved and exceeded PHINDPDOTBL  Rural offgrid conventional (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 49.50 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 1/5/2016 Page 6 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDPDOTBL  Rural offgrid renewable (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDPDOTBL  5. Direct project beneficiaries (CORE) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4785360.00 10733505.00 1425000.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDPDOTBL  Average interruption frequency per year in the project area (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 70000.00 40525.00 106740.00 51000.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDPDOTBL  Customers served in the project area (Number, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 728337.00 2146701.00 285000.00 Overall Comments Intermediate Results Indicators 1/5/2016 Page 7 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  Community electricity connections constructed under the project (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5946.00 6471.00 450.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  Community electricity connections constructed –Grid (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5946.00 6471.00 450.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  Commy elec. connection constructd–Offgrid/minigrid–Any source except only renewable (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  Community elec. connections constructed–Offgrid/minigrid–Only renewable sources (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 1/5/2016 Page 8 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  Distribution lines constructed or rehabilitated under the project (Kilometers, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 835.00 4452.00 2280.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  Distribution lines constructed under the project (Kilometers, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4452.00 4452.00 2280.00 Date 30-Jun-2010 14-Mar-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  Distribution lines rehabilitated under the project (Kilometers, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  Transmission lines constructed or rehabilitated under the project (Kilometers, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 76.00 334.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 1/5/2016 Page 9 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  Transmission lines rehabilitated under the project (Kilometers, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  Transmission lines constructed under the project (Kilometers, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 76.00 334.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  Generation Capacity of Renewable Energy (other than hydropower) constructed (Megawatt, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 280.00 280.00 280.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  Generation Capacity of Renewable Energy constructed – Wind (Megawatt, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date -- 30-Jun-2014 11-Dec-2015 30-Sep-2016 1/5/2016 Page 10 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  Generation Capacity of Renewable Energy constructed - Other (Megawatt, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 280.00 280.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  Generation Capacity of Renewable Energy constructed-Geo-thermal (Megawatt, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 280.00 280.00 280.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  Generation Capacity of Renewable Energy constructed-Solar (Megawatt, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL 6. Generation capacity of renewable energy (geothermal) constructed or rehabilitated under the project (CORE) (Megawatt, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 280.00 280.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 1/5/2016 Page 11 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  7. Transmission lines constructed or rehabilitated under the project (CORE) (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 76.00 334.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  8. Distribution lines constructed or rehabilitated under the project (CORE) (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4452.00 4452.00 2280.00 Date -- 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  9. Substations constructed or rehabilitated by KPLC under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 26.00 Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  11. Isolated grids constructed or rehabilitated by REA under the project (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date -- 30-Jun-2014 30-Jun-2015 30-Jun-2016 1/5/2016 Page 12 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  12. Community (public facilities) electricity connections provided under the project (CORE) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 440.00 6471.00 450.00 Date -- 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  Community Center (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5946.00 6471.00 450.00 Date -- 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  Hospital (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 862.00 0.00 0.00 Date -- 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  Renewable energy source (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 0.00 0.00 Date -- 30-Jun-2014 30-Jun-2015 30-Sep-2016 1/5/2016 Page 13 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  School (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5084.00 0.00 0.00 Date -- 30-Jun-2014 30-Jun-2015 30-Sep-2015 PHINDIRITBL  Renewable energy source (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 0.00 -- Date -- 30-Jun-2014 30-Jun-2015 -- PHINDIRITBL  Trading Centers (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 862.00 0.00 0.00 Date -- 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  Renewable energy source (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 0.00 0.00 Date -- 30-Jun-2014 30-Jun-2015 30-Sep-2016 1/5/2016 Page 14 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  13. Business electricity connections provided under the project (CORE) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6596.00 8692.00 15000.00 Date -- 30-Jun-2014 30-Jun-2015 30-Sep-2016 Comments Many more business premises are being connected with the completion of the projects. PHINDIRITBL  Enterprises (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 23000.00 0.00 0.00 Date -- 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  Agribusiness (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 23000.00 0.00 0.00 Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  14. Roadmap for implementation of the wholesale electricity market is adopted by MoE (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date -- 30-Jun-2014 30-Jun-2015 30-Sep-2016 1/5/2016 Page 15 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  15. Rural Electrification Master Plan (REMP) annually updated (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date -- 30-Jun-2014 30-Jun-2015 30-Sep-2016 PHINDIRITBL  16. Cost of service study completed one year before 2014 tariff review is launched (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date -- 30-Jun-2014 30-Jun-2015 30-Sep-2016 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P103037 IDA-47430 Effective XDR 217.40 217.40 0.00 182.41 34.99 84% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P103037 IDA-47430 Effective 27-May-2010 05-Jul-2010 01-Oct-2010 30-Sep-2016 30-Sep-2016 Cumulative Disbursements 1/5/2016 Page 16 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) Restructuring History Level 2 Approved on 22-May-2013 ,Level 2 Approved on 30-May-2014 Related Project(s) P153179-Additional Financing: Kenya Electricity Expansion Project 1/5/2016 Page 17 of 17 Public Disclosure Copy